[Click eStock] "GreenPlus, Full Turnaround with Overseas Smart Farm Construction"

Yuanta Securities analyzed on the 16th that GreenPlus is expected to see a full-scale performance turnaround through overseas smart farm construction. No investment opinion or target price was provided.

Researcher Son Hyun-jung of Yuanta Securities said, "The contract for supplying smart farms in Australia is imminent, and we expect two smart farm project supply contracts to be completed within the first half of this year." He added, "These projects are contracts with two general companies in Australia, planning to construct a large-scale strawberry smart farm of about 30,000 pyeong." He continued, "Revenue will be recognized according to the progress of construction, and about 50% of the contract amount from this order is expected to be reflected in this year's sales."

He explained, "Overseas smart farm sales in 2024 are expected to be about KRW 35 billion, and the lead time until construction completion is about 15 months, so sales growth is expected to continue until the second half of next year."

He said, "GreenPlus is scheduled to sign a contract in the third quarter to construct research smart farms on two campuses of Queensland University in Australia," adding, "This is a contract of a similar scale to the projects in the first half of the year, and if the order is successful, part of the contract amount is expected to be reflected in this year's sales."

Researcher Son emphasized, "We are discussing a smart farm construction project contract utilizing thermal energy from a coal-fired power plant in Australia," adding, "This is twice the scale of existing corporate and university projects, and the contract is expected to be signed within the fourth quarter of this year." He also added, "From 2025, we plan to start a smart farm innovation valley project together with the Queensland state government in Australia."

He emphasized, "This Australian smart farm construction business is expected to proceed as a long-term project worth KRW 500 billion over four years, not just a single order," adding, "Following two general companies, Queensland University, and the coal-fired power plant this year, orders such as the innovation valley are expected to continue next year."

Yuanta Securities forecast that GreenPlus will record sales of KRW 110 billion and operating profit of KRW 9.5 billion this year. Sales are expected to increase by 86.8% year-on-year, and operating profit will turn positive. He said, "Meaningful results are expected to appear from overseas smart farm construction including Australia starting this year, and three projects are also underway domestically," adding, "Sales from the smart farm business are expected to surge."